Boise Cascade, L.l.c. · NYSE:BCC
Boise Cascade, L.l.c — Q1 2020 Earnings Presentation
16 slides from Boise Cascade, L.l.c's earnings presentation, May 9, 2020
Slide 1: First Quarter 2020 Earnings Webcast and COVID-19 Business Update
Boise Cascade Company First Quarter 2020 Earnings Webcast and COVID-19 Business Update May 8, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements u This presentation includes statements about our expectations of future operational and financial performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The accuracy of such statements is subject to a nu
Slide 3: Executive Summary
Executive Summary u 1Q20 sales were $1.2 billion, up 12% from 1Q19. u 1Q20 net income was $12.2 million, or $0.31 per share, compared to net income of $11.4 million, or $0.29 per share, in 1Q19. Ø 1Q20 included $15.0 million and $1.7 million of pre-tax accelerated depreciation and other closure-rela
Slide 4: 1Q 2020 Financial Highlights
1Q 2020 Financial Highlights Sales Adjusted EBITDA 12% 46% $1,170.5 $1,042.1 $59.6 $ Millions $ Millions 34.6 $40.7 1,050.0 907.7 22.6 33.4 25.4 320.1 319.5 (199.5) (8.4) (7.3) (185.1) 1Q 2020 1Q 2019 1Q 2020 1Q 2019 n BMD n Wood n Eliminations n BMD n Wood Corporate May 8, 2020 4
Slide 5: Wood Products EWP
Wood Products EWP LVL I-joists (mmcf) (mmelf) 6.0 70 59 60 60 5.0 4.7 4.6 4.6 60 4.3 4.3 54 52 4.0 50 3.0 40 2.0 30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q ($/cf) ($/melf) $20 18.87 $1,300 1,266 1,276 1,279 1,268 1,266 18.50 18.70 18.59 18.51 $18 $1,200 $16 $1,100 $14 $1,000 $12 $900 $10 $800 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4
Slide 6: Wood Products Plywood
Wood Products Plywood Sales Volume Net Sales Price (mmsf 3/8" basis) ($/msf 3/8" basis) 400 $400 350 343 343 $350 336 318 315 300 $300 287 267 272 254 251 250 $250 200 $200 150 $150 100 $100 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2019 2020 May 8, 2020 6
Slide 7: Building Materials Distribution Sales
Building Materials Distribution Sales ($ Millions) (% of Sales) $1,400 100 20 20 19 21 20 $1,200 1,146 1,097 1,050 80 987 $1,000 908 60 36 39 40 38 38 $800 $600 40 $400 20 44 41 41 41 42 $200 $0 0 1Q 2Q 3Q 4Q 1Q19 2Q19 3Q19 4Q19 1Q20 2019 2020 Commodity General Line EWP May 8, 2020 7
Slide 8: Lumber Composite Price
Lumber Composite Price $650 First Quarter Second Quarter Third Quarter Fourth Quarter $610 $570 $530 $490 $450 $410 $370 361 $330 $290 $250 1 3 5 7 9 11 13 15 17 18 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week 2017 2018 2019 2020 Source: Random Lengths May 8, 2020 8
Slide 9: Panel Composite Price
Panel Composite Price $650 First Quarter Second Quarter Third Quarter Fourth Quarter $610 $570 $530 $490 $450 $410 $370 358 $330 $290 $250 1 3 5 7 9 11 13 15 17 18 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 Week 2017 2018 2019 2020 Source: Random Lengths May 8, 2020 9
Slide 10: Working Capital
Working Capital ($ Millions) 3/31/2020 12/31/2019 Change Receivables $ 340.1 $ 231.6 $ 108.5 Inventory 536.3 497.6 38.7 Other current assets (a) 10.9 7.7 3.2 887.4 737.0 150.4 Accounts payable 309.7 224.6 85.1 Accrued liabilities (b) 127.5 153.7 (26.2) 437.2 378.3 58.9 Net working capital $ 450.2 $
Slide 11: Debt and Liquidity Highlights
Debt and Liquidity Highlights ($ Millions) 3/31/2020 12/31/2019 Net Debt Total debt $ 439.9 $ 440.5 Cash & cash equivalents (215.0) (285.2) Net debt $ 224.9 $ 155.3 Liquidity Position Bank line excess availability $ 345.4 $ 336.7 Cash & cash equivalents 215.0 285.2 Total liquidity $ 560.4 $ 621.9 Ma
Slide 12: COVID-19 Business Update
COVID-19 Business Update u First priority is the health and safety of our associates and those we come in contact with in the course of conducting our business: Ø Our manufacturing and distribution operations have been deemed "essential" businesses in most jurisdictions. Ø Have established work envi
Slide 13: Outlook
Outlook u Current consensus estimate for 2020 U.S. housing starts is 1.16 million, down 10% from 2019 levels. Expecting significant demand disruption in 2Q20 with a large number of states having implemented shelter-in-place orders. u Operational focus in Wood Products: Ø Adjusting operating rates to
Slide 14: Appendix
joise Cascade @~=— 4 ae = aes ti a Appendix May 8, 2020
Slide 15: Appendix
Appendix EBITDA represents income before interest (interest expense and interest income), income taxes, and depreciation and amortization. Additionally, we disclose Adjusted EBITDA, which further adjusts EBITDA to exclude the change in fair value of interest rate swaps. The following table reconcile
Slide 16: Appendix
Appendix The following table reconciles segment income to EBITDA for the three months ended March 31, 2020 and 2019, and December 31, 2019: Three Months Ended ($ Millions) 1Q20 1Q19 4Q19 Wood Products Segment income $ 3.8 $ 11.6 $ 8.1 Depreciation and amortization 29.6 13.7 14.6 Segment EBITDA $ 33.